Banco do Brasil looks to Asia for $1 bln loan, sources say

Reuters

By Guillermo Parra-Bernal

NEW YORK, Nov 20 (Reuters) - State-controlled Banco doBrasil SA, Latin America's largest bank by assets, isin talks with a pool of lenders to raise at least $1 billion ina syndicated loan transaction, two sources with knowledge of thedeal said on Wednesday.

Banco do Brasil is seeking to attract Asian investors to thedeal, said one of the sources, who declined to be identifiedsince the transaction is in the works. A second source said theloan would have two portions of three and four years,respectively.

The first source said that if market conditions turn outfavorable, the amount raised could go "north of the $1 billionmark." None of the sources detailed the targeted cost ofborrowing for both tranches.

The second source added that the Asia-based units ofJPMorgan Chase & Co, NP Paribas SA, HSBCHoldings Plc and Standard Chartered Plc wereamong the banks offered a chance to participate in the deal.Banco do Brasil declined to comment on the loan plans.

Many Brazilian companies are actively marketing fundraisingdeals in international debt markets before the end of the year,with state-controlled oil producer Petróleo Brasileiro SA and mining giant Vale SA considering thesale of global bonds within weeks.

Vale, Petrobras and Banco do Brasil could obtain fresh fundsfor investments and other corporate purposes earlier than usualto mitigate fundraising risk ahead of the presidential electionin Brazil next October and the U.S. Federal Reserve's expectedtapering of years of monetary stimulus.

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